To address the relationship between innovation and competition we jointly estimate the opportunity, production, and impact functions of innovation in a simultaneous system. Based on Swiss micro-data, we apply a 3-SLS system estimation. The findings confirm a robust inverted-U relationship, in...

The advantages of subcontracting production nurtured by industrial clustering have been broadly documented. Using Taiwan's machine tool industry as the study case, this paper contributes to this realm of literature through examining factors influencing and the process underlying the formation of...